Allowed

Punjab and Sind Bank v. M/S Parveen Industries and Another

DRT13 Apr 2026OA/1292/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of an outstanding loan amount of Rs. 92 Lakhs from the defendants. The Tribunal moderated the claimed interest rate to 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Declaration that defendants are liable to pay Rs. 92,32,473.58 plus costs and simple interest @ 8% p.a. from the filing date till realization; Recovery Certificate issued.

Punjab and Sind Bank versus M/S Parveen Industries and Another — Money Laundering | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1292/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.08.2025

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DATE OF DECISION: 13.04.2026

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Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1980 (Act No. 40 of 1980), with its Head Office at 21, Rajindra Place, New Delhi and Branches amongst other places, one at GT Road, Phagwara, District Kapurthala, through Sh. Manoj Kumar, Chief Manager.

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……..Applicant

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Versus

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M/s Parveen Industries, Murabba No. 37, Killa No.15/2/2, Village Jandiali, Near Good Will Dharam Kanda, Budhe Wala Road, Tehsil Sahnewal, District Ludhiana, through its Proprietor Smt. Alam Bibi W/o Sh. Mohd Yakub.

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Smt. Alam Bibi W/o Sh. Mohd Yakub, R/o Meen Charkan, PO Smailpur, Kartholi, Jammu and Kashmir.

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.……Defendants

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Advocates:

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Argued by Sh. A.B.S. Sidhu, Advocate for Applicant (through VC) None for Defendants (already ex parte vide order date 27.03.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.92,32,473.58 (Rupees Ninety Two Lacs Thirty Two Thousand Four Hundred Seventy Three and Paise Fifty Eight only). The Original Application has been filed through Sh. Manoj Kumar, Chief Manager of the applicant, who are competent to institute

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2 OA NO. 1292/2025 PUNJAB AND SIND BANK VS. MS PARVEEN INDUSTRIES AND ANOTHER

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the Original Application vide Power of Attorney dated 23.04.2015, which is Annexures A1 to this OA.

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The brief facts of the OA are that the Defendant no.1, through its proprietor Defendant no. 2, approached the applicant for grant of Term Loan of Rs. 1,49,55,000/- and CC Limit of Rs. 15,00,000/3. The applicant sanctioned the Term Loan of Rs. 1,49,55,000/- and CC Limit of Rs. 15,00,000/- vide Sanction Letter dated 12.08.2022, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 2 mortgaged her immovable property i.e Total Plot Measuring 907.50 Sq.Yards. situated at Village Jandiali, Hadbast No. 225, Sub Tehsil Sahnewal, District Ludhiana vide Sale Deed bearing Vasika No. 7885 dated 03.03.2022 with its English Translation, which is Annexure A12 to this OA and attached Sale Certificate dated 16.07.2025, which is Annexure A13 to this OA. Documents executed : Term Loan Agreement, Deed of Hypothecation, Undertaking from Borrower, CC Hypothecation Book Debt Facility Agreement, Deed of Hypothecation, Undertaking from Borrower, Letter of Continuity, Form 84-A (CC), Form 84-A (TL), all dated 12.08.2022, which are Annexures A3 to A11 to this OA; Legal Notice dated 30.05.2024, which is Annexure A14 to this OA; Statement of Accounts with certificate, which are Annexures A15 & A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.92,32,473.58, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order date 27.03.2026.

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3 OA NO. 1292/2025 PUNJAB AND SIND BANK VS. MS PARVEEN INDUSTRIES AND ANOTHER

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In support of the OA, affidavit of Sh. Manoj Kumar, Chief Manager, Punjab & Sind Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through Video Conferencing, that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities, which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.92,32,473.58 (Rupees Ninety Two Lacs Thirty Two Thousand Four Hundred Seventy Three and Paise Fifty Eight only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.80% p.a. plus penal interest @2.00% p.a. with monthly rest from 03.08.2025 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets/mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00% p.a. in both the loan accounts from the date of filing

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4 OA NO. 1292/2025 PUNJAB AND SIND BANK VS. MS PARVEEN INDUSTRIES AND ANOTHER

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of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.92,32,473.58 (Rupees Ninety Two Lacs Thirty Two Thousand Four Hundred Seventy Three and Paise Fifty Eight only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.05.2026

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 13.04.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. M/S Parveen Industries and Another

Case brief

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Punjab and Sind Bank v. M/S Parveen Industries and Another

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